isa or fixed bond?

skint69

hi all,
i currently have 10k in a alliance isa-its very low interest rate-2.5 i think.
was thinking of investing in skipton b.s 6% double assett bond.
obviously i will pay tax on the both parts..fixed rate bond and index linked bond,
but surely this is abetter deal overall? i get a cheque for £100 in 4 weeks for signing up
and interest paid monthly.
martin is always saying use your isa first but they are wortless it seems while rates are so slow...advice welcome please!

D1zzy

skint69 wrote: »

hi all,
i currently have 10k in a alliance isa-its very low interest rate-2.5 i think.
was thinking of investing in skipton b.s 6% double assett bond.
obviously i will pay tax on the both parts..fixed rate bond and index linked bond,
but surely this is abetter deal overall? i get a cheque for £100 in 4 weeks for signing up
and interest paid monthly.
martin is always saying use your isa first but they are wortless it seems while rates are so slow...advice welcome please!

The point about an Isa is that if you put in some each year (upto your allowance) you are building up a fund which is permanently tax free. Once you take some money out of the ISA you cannot put it back. You can always move your ISA to one with a better rate though 2.5% is equivalent to 3.1 savings rate which is not too bad.
Haven't looked at the details of the Skipton bond - but the general feeling by those, on here, who know about such things is that these structured products part savings/ part equity are a bad deal and to be avoided. No doubt someone will explain in detail.
...had a quick look
- i notice that you potentially have to put your funds in @ 2% for 2 months initially ..................................